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As Mr. O'Connor discusses, compensation for breaks does not offset unpaid overtime, according to the U.S. Court of Appeals for the Third Circuit. Three manufacturing workers sued their employer for requiring unpaid work outside of their regular shifts. The employer argued that the workers were paid for breaks during their shifts, which offsets any overtime pay that they might be entitled to for time spent changing into and out of their work attire. In a case of first impression, the Third Circuit reversed a lower court’s decision and found that the company could not use compensation that was included in an employee’s regular rate as a credit against unpaid overtime.